A slight mistake can lead to thousands of dollars in claims and the cost for legal assistance can reach as much as the claim itself. Members working together can greatly reduce this risk if all members involved with a transaction carry proper insurance.

WCA’s Freight Services Liability insurance (FSL) is a new and unique tailor-made product designed to protect members’ businesses as well as their agents and clients. FSL is purchased by freight forwarders and incorporates Errors & Omissions and Legal Liability coverage. It’s the world’s first such online system and is both simple to use and more competitive than any other comparable insurance. WCAworld has worked very hard to make this exclusive new member benefit come to reality – by harnessing the unique market positioning and global strength of WCAworld.

FSL covers your company’s “liability for a negligent act, error or omission by the insured, its servants, agents while acting within the scope of their duty or authority carrying out the legitimate forwarding and ancillary operations of the insured.”  This includes filling out documentation, clerical procedures, “delay, misdelivery or wrongful delivery of cargo” and misdeclaration or misdescription of cargo. It is also sometimes known as a “first dollar legal defense,” meaning you are covered from the very start of any action against you.

Errors and Omissions:

Errors and Omissions (E&O) coverage is included in WCAworld’s Freight Services Liability insurance. E&O is designed to protect the operations of member freight forwarders
Mistakes can be extremely costly to a client, and often it is the broker, forwarder or logistics provider who is expected by their client to pay for the mistake. Even if there is no mistake, the legal cost of defending a case can be huge. If your client sues you, even if they are in the wrong, it could cost you more than you have to defend yourself if you are uninsured. E&O coverage includes everyday risks such as improper release of goods, misdirected freight and other errors or omissions that could be made by your staff.
Our FSL insurance was the world’s first such policy to be offered online. It’s wonderfully simple to use and in the vast majority of cases a WCAworld member can obtain coverage – with immediate effect if required – within five minutes via the onscreen dialogue. There are numerous options for deductibles (sometimes called "excess") and the level of coverage required.

WCAworld is able to bring you FSL insurance at amazing rates because it’s offered ONLY to members. Because we monitor our membership so closely and make certain only professional forwarders are allowed into our Networks, WCAworld can demonstrate to underwriters that there will be relatively few claims, so they in turn can give members a better premium.

Legal Liability:

Legal Liability cover is included in WCAworld’s Freight Service Liability insurance (FSL). Legal Liability is designed to protect freight forwarders as well as their customers/clients and agents with regards to their freight service contracts

The Legal Liability insurance is also a “first dollar legal defence”. Legal liability takes care of just about all the things that can go wrong – sometimes out of your hands.
If a bill of lading is issued in your name (such as an NVOCC or house airway bill), or if you occasionally hold freight at your office even for short periods of time, you can be held liable for damage. Operating a warehouse and performing local cartage services creates a legal responsibility for the cargo while it is in your custody. Limitations of liability written into your warehouse receipt or bill of lading do not apply if a value is declared on the bill of lading and may, in fact, be overturned under some circumstances.

Forwarders who carry FSL insurance are covered for both E&O and Legal Liability, and should make sure their clients know this – promoting this benefit can lead to substantial business gains. Put in your sales material that you’re covered; you don’t have to worry and neither does your client.  Both of you can enjoy peace of mind.